Pilot launching is a readily understandable objective. Any pilot operation aims to determine whether or not the system works as well as intended and at discovering design errors and weak components. For example, the pilot launch may uncover production problems.
The manner in which new products are tested in the real competitive marketplace takes many forms from some limited market test experiments («limited testing») to «full test marketing».
This is the stage at which actual prototypes are tested. Deeper evaluations are now possible. In this field, the selection of an appropriate test sample is contentious. Most practitioners simply employ a judgement sample in the target segment.
This is the phase in which the organisation finds out if it is technically feasible to produce the product and if it can be produced at costs low enough to make the final price acceptable. In addition, the overall acceptability of the product concept (core product) and the physical product and service offerings (actual and […]
During the business analysis stage the product idea is evaluated to determine its potential contribution to the firm’s sales, costs, and profits. In the course of a business analysis, evaluators ask a variety of questions. Does the product fit in with the organisation’s existing product mix?
Only some ideas will justify the expense of development work, so some mechanism is required to sift out the few that deserve further attention there are two essential features in this screening process.
Strategic factors, as well as the firm’s competence in new product development, will influence how rigorous the search for new product concepts will be. The environmental pressures prompting the search for new products will also have a significant bearing.
Of new product ideas, you might confidently say «There’s one born every minute». It could even be an underestimate! But the question that begs to be asked is: «How many will survive, and why»
Fundamental of the PLC concept The PLC concept has two key elements. First, product sales are said to go through a sequence of stages at varying speeds. Second as a result of the changing character of market competition, profits also have a cyclical curve, but one which tends to start descending while the sales curve […]
Having identified the segments in a given market and decided which segment(s) to target, a company must then position its products correctly in the chosen segment(s).
